Japan Machinery Orders Declined 3.5%, Current Account Surplus Falls

Hiruki Nakamura
08 Oct, 2015
New York City

Stocks in Tokyo closed down and the yen edged higher as investors focused on the latest batch of earnings. Current account surplus in August declined and core machinery orders slumped 3.5% in the month. Daiwa House first-half net increased 2%. J Front Retailing annual net soared 48%.

[R]4:30 PM Tokyo – Stocks in Tokyo closed down and the yen edged higher as investors focused on the latest batch of earnings. Current account surplus in August declined and core machinery orders slumped 3.5% in the month. Daiwa House first-half net increased 2%. J Front Retailing annual net soared 48%.[/R]

Nikkei average in Tokyo closed down and the yen remained in favour as investors focused on the latest corporate earnings.

The core machinery orders in August declined 5.7% after falling 3.6% in the previous month, the Cabinet Office said.

For the year, core machinery orders slumped 3.5% compared to 2.8% jump in the last month.

The current account surplus in August declined to 1.65 trillion yen from 1.81 trillion yen in July, the Ministry of Finance reported today.

The trade deficit in the month increased to 326.1 billion yen from 108 billion yen in previous month.

Export in August declined to 5.86 trillion yen form 6.54 trillion yen in July and import slumped to 6.18 trillion yen compared to 6.65 trillion yen in last month.

The Nikkei 225 Stock Average slumped 181.81 or 0.9% to 18,141.17 and the broader Topix index fell 11.77 to 1,481.40.

The yen strengthened to 119.75 against a dollar.

China-controlled state television network said today that Chinese yuan has surpassed the yen as the fourth most used currency in the world for daily transaction.

Stocks in Review

ABC-Mart Inc plunged 7.7% to 7,000 yen after the branded shoes retailer reported net sales in the in the first-half ending in August soared 11.5% from a year ago to 120.43 billion yen.

Net income in the year jumped 3.7% to 14.66 billion yen compared to 14.14 billion yen and diluted earnings per share increased to 177.72 yen from 171.41 yen.

The retailer estimated net sales for the year to surge 10.9% to 236.80 billion yen and net income to rise 4.1% to 25.38 billion yen.

Daiwa House Residential Investment Corp slipped 1.1% to 237,000 yen after the real estate developer said net sales in the in the first-half ending in August advanced 7.6% from a year ago to 9.36 billion yen.

Net income in the year increased 2.1% to 3.15 billion yen compared to 3.08 billion yen and diluted earnings per share rose to 4.21 yen from 4.12 yen.

The home builder forecasted net annual sales to jump 2.2% to 9.57 billion yen and net income to edge up 0.4% to 3.16 billion yen.

Fast Retailing Co Ltd dropped 2.3% to 48,640 yen after the apparel retailer reported net sales in the in the year ending in August soared 21.6% from a year ago to 1.68 trillion yen.

Net income in the year surged 47.6% to 110 billion yen compared to 74.55 billion yen and diluted earnings per share jumped to 1,078.08 yen from 730.81 yen.

The retailer forecasted net sales for the year to increase 13% to 1.90 trillion yen and net income to advance 4.5% to 115 billion yen.

The company booked impairment losses related to its J-Brand label and Uniqlo brand U.S. stores.

Lawson Inc decreased 1.9% to 8,810 yen after the convenience stores operator reported net sales in the in the first-half ending in August jumped 19.6% from a year ago to 189.34 billion yen.

Net income in the year declined 9.5% to 19.81 billion yen compared to 21.82 billion yen and diluted earnings per share dropped to 197.95 yen from 218.73 yen.

The retailer estimated net sales for the year to soar 16.3% to 579 billion yen and net income to advance 7.7% to 35.20 billion yen.

Seven & I Holdings Co., Ltd slumped 2.2% to 5,421 yen after the convenience stores operator said net sales in the in the first-half ending in August slid 0.3% from a year ago to 2.99 trillion yen.

Net income in the year rose 0.7% to 84.52 billion yen compared to 83.90 billion yen and diluted earnings per share gained to 95.51 yen from 94.82 yen.

The retailer forecasted net sales for the year to increase 1.8% to 6.15 trillion yen and net income to jump 5.8% to 183 billion yen.